1. Home
  2. »
  3. News
  4. »
  5. Market Analysis of Sustainable Financing for Agriculture in Brazil
NEWS
Market Analysis of Sustainable Financing for Agriculture in Brazil
06/27/2021 Since 3 months

The Brazilian green bond market has grown exponentially since 2015, from 0.6 to 9 billion dollars. Over the past two years, other labeled bonds, such as social, sustainable, sustainability-linked bonds, and transition bonds have also come to the market. The land use category continues as the second most funded in Brazil across these sustainability-themed debt. The Climate Bond Initiative (CBI) with the support of Gordon and the Betty Moore Foundation, produced a report that covers issuances from May 2015 to February 2021 under the green, sustainable, sustainability-linked and transition thematic labels.

Green bonds continue to dominate the Brazilian market, representing 84% of the country’s sustainable debt market. Renewable energy and Land use remain the two most funded categories, with 45% and 27% of the volume of emissions. Sustainable bonds represent 15% of the Brazilian market for labeled bonds, with USD 1,600 million; being those related to Land Use which represent the majority of transactions (33%), followed by those related to Water resources (25%). Land Use Change category covers agriculture and livestock production and forestry.

Some measures that can expand the scale of the Brazilian market for sustainable agricultural bonds include:
• Disclosure of the eligibility criteria for sustainable agriculture
• Detailed transition pathways
• Building investor demand for agriculture
• Leveraging key policy developments
• Prioritising of agriculture within sovereign bonds

The land use sector has an important role in Brazil’s sustainable finance market, and thematic labels from issuers across all agricultural themes has the potential to increase and place the country on the map as the largest sustainable agriculture bond market.

This post is also available in: Spanish

LATEST NEWS
With IDB’s support, Brazil’s Eletrobras issues its first Green Bonds to finance electricity transmission lines
Eletrobras, a company in the electricity sector in Brazil, debuted in the green bond market with an issue made by its subsidiary CGT Eletrosul. R$ 185 million (about US$ 34,6 million) will be put on the market in the ...
Since 24 hours Read More
FEBRABAN Banking Economy Award
Since 2009 FEBRABAN has been promoting the FEBRABAN Banking Economy Award, which aims to encourage debate and academic research on themes related to the financial market and banking economy. In this 13th Edition, a...
Since 1 week Read More
Chile issues Treasury Social Bonds for US$2.1 billion in foreign currency
The Ministry of Finance informs the issuance of Treasury bonds in the international markets for a total equivalent of approximately US$2.1 billion, as part of the Central Government’s 2021 additional financing plan. T...
Since 1 week Read More